U.K. CMA Decides Microsoft Deal For Activision Blizzard Is Not Harmful To Competition

In the greater understanding of the Activision Blizzard deal still underway by Microsoft for $70 billion, it appears the Xbox firm has overcome its largest obstacle yet. Previously, the U.K. Competition and Markets Authority (CMA) decided that the arrangement for complete purchase of the video game conglomerate would be detrimental to the industry and considered the deal only passing with Call of Duty left out of the purchase.

With the investigation continuing into the new year, more has unraveled on more knowledge within Microsoft. Although the platform holder champions Xbox Game Pass, it was discovered that the subscription service simply ‘cannibalizes’ titles launching on the platform. Additionally, a separate report shared efforts to launch a mobile gaming store exclusive to the Xbox ecosystem to combat Apple & Google’s dominance on the platform.

According to a new press release from the U.K. CMA, the investigation is closing in favor of Microsoft. In that, it has found the decision to squander on Microsoft’s plans met a shortcoming as titles will not be hindered with the number of supported streaming platforms. Microsoft has illustrated this with NVIDIA GeForce Now & Boosteroid in the past.

Provisional findings are a key aspect of the merger process and are explicitly designed to give the businesses involved, and any interested third parties, the chance to respond with new evidence before we make a final decision.

Having considered the additional evidence provided, we have now provisionally concluded that the merger will not result in a substantial lessening of competition in console gaming services because the cost to Microsoft of withholding Call of Duty from PlayStation would outweigh any gains from taking such action. Our provisional view that this deal raises concerns in the cloud gaming market is not affected by today’s announcement.

Martin Coleman, U.K. Competition and Markets Authority Chair of the Independent Panel of Experts

“The CMA’s addendum to its provisional findings today relates only to competition in the supply of consoles and not to competition in the supply of cloud gaming services, where the CMA is continuing to carefully consider the responses provided in relation to the original provisional findings,” the press release reads. The investigation is to still resume until next month.

Noted, while Microsoft might overcome this titan in the courtroom across the pond, the Xbox firm still has trouble to deal with back home. The Federal Trade Commission (FTC) previously filed a lawsuit against Microsoft over a similar belief regarding the Activision Blizzard deal being malicious on competition. You can read the full report by heading here.

Are you surprised by the turn of events from the U.K. CMA?

Source: U.K. Competition and Markets Authority